CLA-2-82:OT:RR:NC:1:118
Ms. Linda Hamanaka
Ken Hamanaka Co. Incorporated
138 Lomita Street
El Segundo, CA 90245
RE: The tariff classification of tool sets from China and Taiwan.
Dear Ms. Hamanaka:
In your letter dated January 7, 2015, you requested a tariff classification ruling on behalf of A.W.I. Acquisition Co., dba Allied International. The samples you have submitted are being returned as requested.
You provided five samples for review. Each of the following tool sets is packaged ready for retail sale in a fitted plastic carrying case:
Item number 39100, described as a 16 Piece Socket and Ratchet Set, includes a 19 mm Pass-Thru Reversible Ratchet Handle, thirteen 19 mm sockets, 3” extension and a 3/8” drive ratchet adaptor.
Item number 38054, described as a 24 Piece Universal Drive Socket Set, includes a 3/8” drive ratchet, eleven 1/4" sockets, nine 3/8” sockets, 3” extension and a reducing adaptor.
Item number 39070, described as a 94 Piece Mechanic’s Tool Set, includes a 3/8” drive ratchet, sixteen 1/4" sockets, eleven 3/8” sockets, 3” extension, reducing adaptor, magnetic bit driver, thirty driver bits (Phillips, slotted torx®, pozi, square and hex), ten SAE and Metric nut driver bits and sixteen SAE and Metric hex keys.
Item number 39053, described as a 171 Piece Mechanic’s Tool Set, includes a 1/4" ratchet, 3/8” ratchet, 1/2" ratchet, twenty 1/4" sockets, thirty-five standard and deep 3/8” sockets, twelve 1/2" sockets, two spark plug sockets, 3” extensions, magnetic bit driver, forty driver bits (Phillips, slotted torx®, pozi, square and hex), twenty SAE and Metric nut driver bits, sixteen SAE and Metric hex keys, twelve SAE and Metric combo wrenches and a magnetic parts tray .
Item number 39067, described as a 132 Piece Mechanic’s Tool Sets, included a 3/8” drive ratchet, twenty 1/4" sockets, twenty-one 3/8” sockets, two spark plug sockets, 3” and 6” extensions, reducing adaptor, magnetic bit driver, forty driver bits (Phillips, slotted, torx®, pozi, square and hex), ten SAE and Metric nut driver bits, sixteen SAE and Metric hex keys and ten SAE and Metric combo wrenches.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to the goods, even if one of them gives a more complete or precise description of the good. The headings at issue only refer to part of the items in the set put up for retail sale. As such, they are regarded as equally specific and classification of the set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3.
You proposed in your ruling request that the ratcheting handle, classified within heading 8466, HTSUS, imparts the essential character of each tool set. An essential character determination is only required when classifying an item under GRI 3. The 16 Piece Socket and Ratchet Set, item number 39100, and the 24 Piece Universal Drive Socket Set, item number 38054, contain sockets, drives and extensions. These articles are provided for within subheading 8204.20.0000, HTSUS, in accordance with GRI 1. Inasmuch as no essential character determination is required for item numbers 39100 and 38054, your proposed classification for these tool sets is not applicable.
However, item numbers 39070, 39053 and 39067 consist of at least two different articles that are, prima facie, classifiable in different headings. They consist of articles put up together to carry out a specific activity (i.e., tightening/fastening). Finally the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, these tool sets are within the term “goods put up in sets for retail sale.” GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. Your suggestion that the ratchet handles impart the essential character of these tool sets is not applicable in the instant case. The ratchet handles are not used with every item in the sets, e.g. they cannot be used with bits or wrenches. Inasmuch as no essential character can be determined for item numbers 39070, 39053 and 39067, GRI 3(b) does not apply. GRI 3(c) states that, if neither GRI 3(a) nor GRI 3(b) applies, merchandise shall be classified in the heading which occurs last in numerical order among those equally meriting consideration. In this instance, the ratchet handles are classified in the heading which occurs last in numerical order among those which equally merit consideration.
Accordingly, the applicable subheading for item numbers 39100 and 38054 will be 8204.20.0000, HTSUS, which provides for “Hand-operated spanners and wrenches (including torque meter wrenches but not including tap wrenches); socket wrenches, with or without handles, drives or extensions; base metal parts thereof: Socket wrenches, with or without handles, drives and extensions, and parts thereof”. The rate of duty will be 9% ad valorem.
The applicable subheading for the item numbers 39070, 39053 and 39067 will be 8466.10.8075, HTSUS, which provides for: “Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Tool holders and self-opening dieheads: Other”. The rate of duty will be 3.9 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Anthony Grossi at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division